Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- The Sterling-Yen is consolidating, and the wave counts suggest we are still in the middle of it.
- Possible, we are in a wave 2 correction. We should have completed wave (a), and now in wave (b), which could be a 3-wave decline.
- Then if after 3 wave down we rally in a 5 wave manner to complete (c), the market would have shown very conventional structure for a correction.
- Therefore, a decline after (c) should be wave 3, and accelerate lower.
- Since our last count, this is still valid, although wave (a) is stronger than previously anticipated, but the 134.15 resistance did hold.
- The daily chart shows the market after completing 3 waves up. The 4th wave coming down overlapped the first wave up, so this is not an impulse wave up.
- That gives a better chance for the bearish outlook. After some twisting and turning, as long as the high near 135.00 holds, we should be heading down. A swing projection can target 130.00. We see 50% retracement level at 130.50 and 61.8% retracement at 129.50.
- The market is considered ranging at the moment, so a return to this 50% - 61.8% range can be anticipated.
Will the market accelerate south after the current consolidation? We would love to hear what you think.
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